L’Oréal reports record 53% sales growth in Sub-Saharan Africa
French beauty giant L’Oréal reports record growth across markets in Sub-Saharan Africa, with over 130 million products sold in 2013. The group plans to expand its retail presence and to build two production facilities, one in Kenya and one in South Africa. L’Oréal is thus expressing its confidence to take the leading position of the beauty market in sub-Saharan Africa by the end of 2015. Kenya, Nigeria and South Africa have been L’Oréal’s key regional markets in the past 2 years.
Rival group, American Estee Lauder has also been focusing on Africa, with already a very strong presence in North Africa. Estee Lauder’s strategic approach to sub-Saharan markets has been to develop through mono-brand sales points for its flagship brand, having already opened M.A.C. mono-brand boutiques in Lagos and Capetown. LVMH has also been carefully analyzing the sub-Saharan region, already with a strong market share for its fine wines and spirits division, however, it is also reported to be analyzing expansion of Sephora, its selective retail business which would be a major boost for the regional beauty market.